Underfunded pension plan

(redirected from Underfunded Pension)

Underfunded pension plan

A pension plan that has a negative surplus (i.e., liabilities exceed assets).

Underfunded Pension Plan

A pension plan that has more liabilities than assets. That is, the retirees covered under the pension plan have been promised more than the plan contains. This may happen for a variety of reasons, such as the pension's investments not going as expected, or perhaps retirees are living longer than expected. It can lead to bankruptcy, though some pension plans have government guarantees.
References in periodicals archive ?
For the first round of reporting, the state Treasury Department has found more than 110 out of 490 local units of government have been preliminarily identified as having an underfunded pension plan or retirement health care plan, or both.
New York: A wide ranging proposal to address Kentucky's underfunded pension plans could gradually improve the commonwealth's credit as large and growing pension obligations have been one of its key rating challenges, Fitch Ratings says.
Bob Scott, a senior partner at LCP, said: "The collapse of BHS and the potential sale of Tata Steel UK, both with underfunded pension schemes, have highlighted the significance of pension liabilities and the impact that a large defined benefit scheme can have on a UK company.
Tsipras' coalition majority fell to three last month after two lawmakers rebelled against a set of reforms demanded by the lenders, raising questions about his ability to push through a more ambitious long-term reform of the country's complex, underfunded pension system next month.
000% senior notes due 2016, to fund certain underfunded pension obligations as well as other general corporate purposes.
The New York Times reported that earlier this year, BlueMountain joined a legal challenge against a law that allows Puerto Rico, which faces a heavy debt burden, a weak economy and significantly underfunded pension obligations - to restructure some of its debt.
Here's our wild prediction: We'll hear more about this underfunded pension plan.
The fallout from Illinois's woefully underfunded pension system continues to expand.
The report highlights activities that have and have not been successful in producing meaningful reform, and details a number of recommendations for other states seeking to successfully improve their underfunded pension systems.
in the amount of underfunded pension liabilities relative to revenues,
And a number of large companies have had to make sizable contributions to their underfunded pension plans over the last couple of years.